Air Products to build LNG-based ASU at PETRONAS Gas‑led Pengerang terminal

Key highlights
  • Facility will produce more than 600 tonnes per day of liquid oxygen, nitrogen and argon.
  • Expected to come onstream by early 2027.
  • Air Products will design, build and operate the LNG-based ASU for PG Cold Energy 1, a JV led by PETRONAS Gas Berhad and DIALOG Group.
  • The plant will use LNG regasification cold energy to improve efficiency and reduce production-related emissions for the Southern and Central Malaysia merchant market.

Scope and partners

Air Products concluded a definitive agreement with PG Cold Energy 1 Sdn. Bhd. (a joint venture led by PETRONAS Gas Berhad via PG Energia and DIALOG Group via DIALOG Equity) to design, build and operate an LNG-based air separation unit at the Pengerang LNG regasification terminal in Johor.

Capacity and timing

The plant will produce more than 600 tonnes per day of liquid oxygen, nitrogen and argon and is expected to come onstream by early 2027. A document exchange ceremony at the PETRONAS Twin Towers was attended by senior executives including PETRONAS Gas Berhad's MD/CEO Abdul Aziz Othman, DIALOG Executive Deputy Chairman Chan Yew Kai and Air Products' Asia President Kurt Lefevere.

Technology and emissions impact

The ASU will use cold energy reclaimed from the LNG regasification process to liquefy air at low temperatures, improving energy efficiency and reducing production-related emissions compared with conventional air separation processes.

Market coverage

The facility will supply the merchant market in Southern and Central Malaysia to support demand from electrical and electronics, petrochemicals, aerospace and manufacturing sectors. Air Products has operated in Malaysia since 1974 and this will be its fifth LNG-based ASU in Asia.

Source: Air Products

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